News

“The widely reported rumors, which Apple declined to address, suggest that the company will unveil an inexpensive iPod that will cover the end of the market dominated by cheaper MP3 players from Creative, Rio and Dell.

The risk in such a move would be undercutting brisk sales of iPods, which now range in price from $299 for a 10GB drive to $499 for a 40GB drive. In Apple’s fourth quarter, ended Sept. 27, sales of the iPod generated $121 million in revenue, up 9 percent from the prior quarter and 128 percent from a year ago. The company has said the iPod business is profitable.

‘I don’t think Apple currently needs to sell a $100 iPod at risk of cannibalizing sales of existing models and sacrificing gross margins,’ said Tim Deal, analyst with Technology Business Research in Hampton, N.H. ‘Apple already has the market lead, so I don’t see the need for (the $100 version) when people are buying $299 and $399 models.’”

Radtech and Geekshelter partnered up to bring you an after Christmas give-away. We thought those lucky ones who got an iPod from Santa would need a case to keep their precious iPod in, so we are giving away five (5) PodSleevz! Please enter your information [at the link] for a chance to win a PodSleev with the color and size of your choice!

“Apple continues to dominate the overall portable MP3 player market in the US with the 10GB iPod the number one selling device leading into the Christmas buying season, according to final numbers just released by industry intelligence group IDC.

The monthly retail numbers show the Apple US$299 10GB iPod “virtually neck and neck in terms of unit sold” with the US$140 Digitalway128MB player for first and second place respectfully, according to company analyst Steve Baker. The US$399 20GB iPod was third, followed by the US$140 128MB iRiver player. The US$499 40GB iPod rounded out the top five best sellers.”

As we draw closer to Macworld 2004, many major news outlets are now reporting that Apple CEO Steve Jobs will announce low cost, mini iPods during his Keynote Presentation. The following is a roundup of articles with varying details about the mini iPod. In the Scotsman newspaper report “New smaller iPod is going for a song” states “Apple has announced it is unveiling a smaller version which will cost around

“‘This will be the year downloadable music ... goes legitimate,’ says Dave Fester, general manager of Microsoft’s digital media division.

Those jumping on board the digital music bandwagon can thank Apple Computer for getting it rolling. Apple opened its iTunes online music store in April and was the first to let patrons download individual songs for 99 cents, without having to commit to a subscription service.

The software giant aims to topple Apple as the early market leader by spurring the growth of a cross section of digital music suppliers and device makers all using the Windows Media format, it says.

‘The best part about Windows Media is that it unlocks choice,’ Microsoft’s Fester says. “You can buy from the store or use the device that gives you the best experience.”“

“Since May 2003, when Apple Computer’s online music service iTunes opened its digital doors, the drums announcing other online music services—new enterprises as well as existing music services spruced up and recharged—have been steadily beating. [...]

The future looks good, too. Jupiter Research expects online music sales to grow to $3.3 billion by 2008. Forrester Research expects that within four years online music will account for 33 percent of the music industry’s sales. But behind the vaunted successes and the optimistic predictions lurk at least two big questions: Which online music vendors, among the nearly one dozen operating today, have found the business model that will guarantee they will be around in 2008 to share the profits? Can the for-fee services make a dent in the billions of musical tracks exchanged, at no cost, on pirate networks?”

In the January 2004 issue of Word magazine 16 experts discuss the future of the music industry and try to sort fact from hysteria. Amongst those answering questions are musicians Moby and Peter Gabriel, Executives from EMI and MTV and passionate advocates like Nick Hornby and Tony Wilson.

From the future of the album, through how musicians will adapt to downloading, the panel give their opinions on the future of music. Inevitably the iPod comes into the discussion.
The panel was asked “Does the iPod fundamentally change something about the way you listen to music. And if so, what?”

“Apple’s popular MP3 gadget is at the front lines of a battle for digital rights. Can the government, the entertainment industry and Microsoft stop it?

The phenomenon known as the iPod is emerging from the shadows of Napster and the Mac to become a force unto its own. As a designer toy, it offers the promise of mobility, the allure of 21st Century Art Deco and the gratification of impulse buying.

But behind the scenes, Apple Computer’s MP3 device is the bulwark of an increasingly serious battle for digital rights versus the virtual law firm of Achcroft, Valenti and Gates. With the help of an increasingly pliable Congress, Microsoft has moved rapidly to encapsulate digital content in a digital-rights-management layer of protection.”

Deals On The Web: A reader points us to Circuit City for discounts on current generation iPods. The 10GB iPod is $269.99 and the 40GB iPod is $449.99. Both include Free ground shipping and are the lowest current price we’ve seen on new units. Search for “iPod” to find the deals.

Editor’s note: We have corrected the headline from ‘4G’ to ‘3G’. Deals On The Web is incorrectly stating it as 10GB 4G iPods.

“‘We’ve been running around for the past couple of days trying to find it,’ said 16-year-old Joey Balinski, looking downcast after coming up iPod-less at another store. ‘I would have asked for it for Christmas a couple of years ago, but I figured by now it would be easier to find. [...]

‘It still beat our overestimating expectations,’ said Kawika Holbrook, assistant manager at the Apple Store at Westfield Shoppingtown Valley Fair, noting his store had sold thousands since Thanksgiving. Plus, fate may have conspired against a few iPod lovers. A large FedEx MD-10 airplane that caught fire Thursday in Memphis had a load of iPods on it, Holbrook said. ‘The picture was being passed around the Net, and we were like, ‘No!’ ‘Apple has not said whether any iPods were damaged, or whether that affected late-season availability.”

“When Apple Computer Inc. chief executive Steve Jobs takes the stage at MacWorld next month, analysts expect him to unveil smaller, cheaper iPods and hope he will detail the company’s strategy to move into the digital living room.

The lower-end iPods, which are expected to carry a price tag of about $100 and will hold 400 to 800 songs, are a necessary answer to the bevy of MP3 digital music players now on the market that cost $100 or less, analysts said. [...]

In addition to the lower-cost iPods, the Cupertino, California-based Apple is also expected to unveil them with different colors and even in stripes, as well as variously colored cases for Apple’s traditional iPods, according to Enderle and Mac rumor Web site Thinksecret.com.”

Brian Briggs at BBspot.com has reviewed several music download services; iTunes Music Store, Napster, Musicmatch, Rhapsody, Wal Mart, BuyMusic and EMusic. “I didn’t start out this process with a desire to review all the music services, but as a desire to have a “legal” music collection. I found myself jumping from service to service to see what was offered, and found that there wasn’t one met all my needs, but some were closer than others.”

“The makers of Kazaa, the world’s most popular computer file-sharing program, cannot be held liable for copyright infringement of music or movies swapped on its free software, the Dutch Supreme Court ruled Friday. [...]

‘This victory sets the precedent about the legality of peer-to-peer technology across the European Union, and around the world,’ Kazaa founders Niklas Zennstrom and Janus Friis said in a statement distributed on the Internet. They called the ruling a ‘historic victory for the evolution of the Internet and for consumers.’”

“John Lewis had also sold out of the iPod, and was warning customers they may have to wait until mid January to get their hands on the product. Dan Knowles is the company’s director of buying for electrical goods.

He said: ‘We have sold over 2,500 iPods in the run-up to Christmas, which is a lot for such a highly priced product. It just seems to have that cool factor somehow, it’s a truly iconic product already. I don’t think there is a secret to it, it’s just a really, really good product.’

However, those in the industry are unsurprised by the success. Gadget magazine Stuff voted the iPod its number-one gadget from a list of 100 products. Gary Parkinson, deputy editor, said: ‘There has been phenomenal interest in the iPod. I don’t think we have ever experienced anything like it for a gadget.’”